Supreme Court of the United States

Sedima, S. P. R. L. v. Imrex Co., Inc.

July 1, 1985473 U.S. 479

Summary

Justice White's majority opinion held that a private civil RICO action requires neither a prior criminal conviction nor a distinct racketeering injury separate from the harm caused by the predicate acts. A plaintiff must allege the elements of the RICO violation and injury to business or property caused by the conduct constituting that violation. The Court reversed and remanded without deciding whether the alleged predicate acts occurred or constituted a pattern. Justice Marshall, joined by Justices Brennan, Blackmun, and Powell, dissented, arguing that civil RICO requires a distinct commercial injury arising from racketeering's economic power rather than merely the direct injury from predicate offenses. Justice Powell also dissented separately, emphasizing Congress's organized-crime focus and advocating a narrower interpretation, particularly of the pattern requirement.

Holding

  • Whether a prior criminal conviction is a prerequisite to a private civil RICO action.. A plaintiff may maintain a private treble-damages action under § 1964(c) without a prior criminal conviction of the defendants for either a RICO violation or the predicate offenses.
  • Whether civil RICO requires injury distinct from the harm caused by the predicate acts.. Section 1964(c) imposes no separate racketeering-injury requirement. A plaintiff alleging a § 1962(c) violation must allege conduct of an enterprise through a pattern of racketeering activity and injury to business or property caused by the conduct constituting the violation.

Docket 84-648

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